April 8, 2024 About M&S
Marks & Spencer (M&S) is a well-established British multinational retailer with a history dating back to 1884. The company operates a diverse range of stores, offering clothing, food, and home goods. It is based at Waterside House, 35 North Wharf Road, London, W2 1NW, GB.
United Kingdom
M&S has positioned itself as a premium brand and has also prioritized sustainability and ethical practices. It competes in the middle-to-upper tier of the retail industry, facing challenges from changing consumer preferences and the rise of e-commerce.
M&S Sustainability Rating is 4.3
This means M&S are well-above average compared to other companies in the Multiline and Specialty Retailers & Distributors.
Industry positioning
M&S positioning within the Multiline and Specialty Retailers & Distributors
Sustainability issues in the food retail and distribution industry encompass concerns such as food waste, supply chain sustainability, excessive packaging and plastic waste, energy consumption, sustainable sourcing, water usage, food safety, health and nutrition, transportation emissions, local sourcing, social responsibility, and consumer education.
Tackling these issues involves adopting sustainable practices, responsible sourcing, reducing waste, and promoting ethical and environmentally friendly choices throughout the food supply chain. Collaboration between businesses, consumers, and regulatory authorities is essential to effectively addressing these challenges.
Marks & Spencer's unique selling points are a reputation for high-quality products, a strong commitment to sustainability and ethical practices, a diverse range of offerings to meet various consumer needs, exceptional customer service, a focus on innovation, and a long-standing tradition and brand trust.
M&S Sustainability Rating Breakdown:
M&S Overall Sustainability Rating is 4.3 out of 5.0
M&S launched its Plan A sustainability initiative in 2007 and updated the initiative in 2021 with the objective of becoming a net-zero business across its entire value chain by 2040.
To achieve this, M&S has developed a roadmap identifying ten priority areas for transformation, including:
- Zero deforestation: 100% of soy to be sourced from verified deforestation and conversion-free regions by 2025/26 and 100% responsibly segregated palm oil by 2025/26.
- Sustainable sourcing: 100% verified recycled polyester by 2025/26
- Increasing the range of plant-based proteins: Double the sales of vegan and vegetarian products by 2024/25.
- Reduce food waste: 100% of edible surplus is to be redistributed by 2025/26, and general food waste is to be reduced by 50% by 2029/30.
- Reduce and recycle packaging: 100% of packaging must be recyclable by 2025/26.Zero-emission property and transport.
M&S Environmental Rating is 4.2 out of 5.0
M&S has an environmental rating score of 4.2, focusing in the following areas:
- Climate risk (4.2): This score reflects M&S understanding and management of climate-related risks that could impact their operations. A score of 4.2 suggests an excellent awareness and management of these risks.
- Greenhouse Gas (GHG) Emissions (3.2): This score measures the emissions of greenhouse gases produced by M&S and their efforts to reduce these emissions. A score of 3.2 indicates a strong effort is being put toward reducing emissions of greenhouse gases.
- Energy Management (4.3): This score demonstrates the effective management of energy consumption. s. A score of 4.3 indicates an excellent effort towards using sustainable energy sources.
- Land Use and Biodiversity (3.8): This score indicates how M&S considers the impact of its operations on land use and biodiversity. A score of 3.8 suggests a strong level of commitment to minimising negative impacts.
- Materials Sourcing (4.8): Reflecting the sustainability and ethical considerations in sourcing materials for their products, a score of 4.8 suggests an excellent effort in responsible sourcing of materials.
- Waste Hazards and Management (4.7): A score of 4.7 assesses how M&S handles waste and hazardous materials. This indicates an excellent waste management strategies and minimization of hazardous waste are in practice.
- Water Management (4.1): This score evaluates water usage and conservation efforts. A score of 4.1 suggests M&S makes an excellent effort in water management.
- Environmental Certifications (4.1): A score of 4.1 reflects an excellent commitment to obtaining environmental certifications, demonstrating adherence to recognized standards and practices in environmental stewardship.
- Environmental Opportunities (4.7): A score of 4.7 indicates that M&S is excellent at identifying and taking advantage of opportunities to benefit the environment, potentially through innovative practices or sustainable growth strategies.
- Environmental Compliance (4.1): A score of 4.1 rates the level of compliance with environmental regulations and standards, indicating strong adherence to legal and ethical norms in environmental matters.
M&S has a good environmental rating with some room for improvement. It excels in areas like material sourcing, waste hazards and management, and energy management. However, M&S could improve its score by implementing better management of greenhouse gas emissions.
M&S Social Rating is 4.3 out of 5.0
M&S has an overall social score of 4.3, which can be broken down into various components, reflecting the company's performance in relation to social challenges:
- Social-related Certifications (3.8): This score indicates a strong level of certifications related to social issues.
- Community Engagement (4.8): This score assesses a company’s involvement in and contribution to local communities. A score of 4.8 indicates M&S have a strong commitment to community engagement.
- Corporate Philanthropy (4.9): A score of 4.9 suggests M&S make a significant contributions to philanthropic causes, demonstrating their measure of commitment to social responsibility through charitable endeavours.
- Data Privacy (4.7): This score is a measure of how vulnerable M&S is to breaches related to personal and customer data. 4.7 indicates excellent M&S Data Privacy protection policies.
- Products and Services (4.6): This score reflects the social impact of products and services provided by M&S, indicating that they are designed and delivered with an excellent consideration for social responsibility.
- Diversity and Inclusion (5): This category indicates an excellent commitment level of M&S to creating an inclusive and diverse workplace and culture.
- Health and Safety (4.9): The health and safety score reflects an excellent robustness of the measures in place at M&S to protect the well-being of its employees and customers.
- Human Rights Abuses (4.4): This score reflects low risk of M&S involvement in or exposure to human rights abuses in company operations.
- Labour Relations (3.4): This score reflects the company's relationship with its workforce, including aspects like union relations and employee treatment. A score of 3.4 indicates a strong level of performance in this area.
- Training and Education (4.4): M&S training and education score represents an excellent the level of commitment to employee development through robust training and educational programs.
- Cyber Risk (3.4): This score assesses exposure to and management of cyber risks that may disrupt business operations. A score of 3.4 suggests a strong preparedness against cyber threats.
- Product Quality Management (4.5): This score reflects the quality and safety of current and future products and services provided by M&S. A 4.5 indicates an excellent standard in managing product quality.
- Supplier Engagement (4): This score assesses how M&S engages with its suppliers on social issues. A score of 4 suggests a strong level of engagement and collaboration with suppliers in managing social risks.
M&S has a moderate social rating. M&S has some stellar scores in areas such as diversity and inclusion, health and safety, and community engagement. Unfortunately, these great scores are dragged down by subpar labor relations with its employees and the business's vulnerability to cyber attacks.
M&S Governance Rating is 4.3 out of 5.0
M&S has an overall governance score of 4.3, which encompasses various aspects of its corporate governance practices and structures:
- Business Resilience and Sustainability (5): This score reflects the capacity of M&S to sustain its operations over the long term and adapt to business challenges. 5 suggests an excellent strategies for resilience and sustainability in the business model of M&S.
- Corporate Compliance Behaviours (3): This score assesses adherence to laws, regulations, and internal policies. 3 shows a reasonable M&S Corporate Compliance Behaviours.
- Governance-related Certifications (3.8): A score of 3.8 in this category reflects a strong level of accountability and adherence to governance-related certifications.
- Board Accountability (5): This excellent score measures the accountability shown by the board of directors at M&S relating to responsible governance, oversight of operations, and commitment to stakeholder interests.
- Business Ethics (5): This score evaluates ethical conduct in business operations. A score of 5 indicates a great standard of ethics.
- Business Transparency (3.3): This indicates the level of transparency in the business operations and disclosures of M&S, suggesting a good communication with stakeholders and clear reporting of activities and financial information.
- Shareholder Rights (4.9): This score reflects an excellent company’s commitment to protecting the rights of shareholders, including ensuring fair treatment and providing appropriate information for shareholder decision-making.
Finally, M&S has a medium governance rating. While M&S scores well in some faculties of governance, like business resilience, board accountability, and business ethics, its overall governance rating is dragged down by low scores in business transparency and corporate compliance behaviors.
M&S Supports These Sustainable Development Goals
So is M&S sustainable?
M&S has shown its commitment to driving positive change through its clear roadmap toward becoming a net-zero business by 2040. M&S has a clear history of being able to hit the sustainability targets it sets, like becoming the first carbon-neutral retailer in the UK and ROI operations in 2012 and launching its plant-based protein range, Plant Kitchen. This should give consumers confidence that when they shop with M&S, they are buying from a brand that has shown proactivity in the sustainability space.
